Vendors at LAX Face Disruption

By JENNIFER OLDHAM

Sept. 18, 2002 12 AM PT

TIMES STAFF WRITER

The city agency that operates Los Angeles International Airport may have to demolish up to one-fifth of the facility’s lucrative concession space to accommodate additional security checkpoints necessitated by new federal security standards.

The airport agency plans to start construction this month to increase the number of security checkpoint lanes at LAX by 25%.

The work may require the relocation of 13 concessions in Terminals 1, 3 and 6 and the Tom Bradley International Terminal. Shops and restaurants in the five other terminals will not be affected.

The most visible change is likely to come at Terminal 1, home to America West, Southwest Airlines and US Airways, where one of the airport’s most profitable food courts and one of its most popular bookstores could be replaced by two new security lanes. The additional lanes are needed to ease long lines that often snake outside from Terminal 1 to Terminal 2.

Concession operators and workers said the proposed changes come as they are struggling to recover from a downturn in travel and new security procedures that allow only ticketed passengers past security checkpoints.

Souvenir shops, bookstores and restaurants displaced by construction would be moved elsewhere in the airport. The targeted concessions, which occupy about 20,000 square feet, generate about $20 million in sales each year, resulting in $2.8 million in fees for the airport agency. Most of the concessions are operated by conglomerates such as W.H. Smith and H.M.S. Host. Some are contracted out to smaller businesses owned by women and minorities.

Officials emphasized that the demolition plans must be cleared by the federal Transportation Security Administration.

Airport officials still hope to negotiate a compromise that would not necessitate demolishing all 13 concessions, or that would allow them to relocate the businesses before construction begins.

“This is a worst-case scenario,” said Airport Commission President Ted Stein. “We would like the ability to negotiate with the TSA to try to save as many concession spaces as possible.”

The commission voted unanimously Tuesday to give the airport agency’s executive director the authority to displace the 13 concessions. The agency said more security checkpoints are necessary to decrease congestion and to minimize security breaches.

“We’re working with concessionaires to accommodate their businesses in other areas,” said Paul Haney, an airport spokesman.

“We want the concessions to continue to be available to the traveling public, and we want to preserve concession worker jobs and the revenue stream coming to the airport.”

Concession operators said even if “half the worst-case scenario” comes true, relocation efforts could lead to hundreds of thousands in lost revenue, and require anywhere from three to six months to move stores. “This could take away anywhere from 10% to 20% of our gross revenue. That’s a pretty substantial hit,” said Clark Davis, president of C.S. Davis Co. and a lobbyist for W.H. Smith.

Construction plans could affect six of W.H. Smith’s holdings at LAX, including its top-and third-grossing stores: the American Collection gifts store in the Bradley terminal and Waterstone’s Booksellers in Terminal 1, respectively, Davis said.

At the commission meeting, union organizers expressed concern about what will happen to the 200 or so employees who work for W.H. Smith and other vendors.

“There are still many questions to be answered, such as what will the full impact be on workers and on their long-term job security?” said Maria Loya, director of public policy and advocacy for the Los Angeles Alliance for a New Economy.

About half of the 200 workers are employed by restaurants in a food court in Terminal 1, including Gordon Biersch Brewery, Boudin Sourdough Bakery, California Pizza Kitchen, Naked Juice and Starbucks. For many of these employees, it is the second time in a year that they have had to worry about layoffs.

“I was laid off after 9/11 for six months and I maxed out my credit cards. I couldn’t pay my mortgage,” said Lotus Silva, who works as a bartender at Gordon Biersch Brewery. “If I’m laid off again, how am I going to get basic things for my two little girls, like food and health care?”

Concessionaires said that they hope to avoid layoffs, but that they could become necessary if their shops and restaurants are relocated to areas that aren’t as profitable as their current locations.

(BEGIN TEXT OF INFOBOX)

Making Room at LAX

Los Angeles International Airport concessionaires may be required to relocate to provide space for security-related changes.

Terminal Concessionaire Square Footage*

1 Starbucks, CPK Express, Boudin Sourdough Bakery, Gordon Biersch, Naked Juice (food) 5,759

1 Waterstones bookstore (retail) 2,087

1 Crews of California (retail) 2,176

3 Jetway Express (retail) 767

6 Jetway Express (retail) 1,700

Intl What a Character (retail) 1,625

Intl American Collection (retail) 2,188

Intl Studio Hollywood (retail) 1,862